e-CRM in Banks


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e-CRM in Banks

  1. 1. “I know who you are, I remember you. I get you to talk to me. And then, because I know something about you, my competitors don't know, I can do something for you my competitors can't do - not for any price” -NEWELL, 2000
  2. 2. Group-III Sunanda Sarker (161201) Iftekhar Alam (161202) Md. Foysal Ahmed (161204) A.S.M. Misbaul Islam (161220) Md. Ataur Rahman (121621) Md. Shakhawat Hossain Dhali (161231) Shilpi Rani Das (161240) A. B. M. Kalim Ullah (161245) Johary Bin Akhter (161246) Partha pratim Debnath (161255)
  3. 3. Customer Relationship Management (CRM): “Customer relationship management is the commitment of the company to place the customer experience at the center of its priorities and to ensure that incentive systems, processes and information resources leverage the relationship by enhancing the experience” -----Peter Keen(1997) Figure: CRM Strategies Three phases of CRM
  4. 4. Electronic Customer Relationship Management (e-CRM): Old CRM + Internet = e-CRM Components of e-CRM
  5. 5. Goals & Objectives of e-CRM Goals • Reduce : Costs of marketing • Improve : – Accuracy and relevancy of recommendations – Customer satisfaction • Increase : – Conversion rate, i.e., Turn browsers into buyers – Customer retention and frequency – Order size – customer response – competitiveness through differentiation – Profitability. Objectives – To provide good customer service – To discover new customers – To enhance customer loyalty/retention – To help sales staff close deals faster – To simplify marketing and sales processes. – To reduce the costs (like administrative) – To increase the goodwill profitability etc. by increasing the customer satisfaction level.
  6. 6. Movement of CRM towards the e-CRM Evolution of CRM and e-CRMEvolution of E-CRM
  7. 7. Levels of e-CRM Foundational services Customer-centered services Value-added services Customer retention and referrals Leveraging customer equity through cross-selling and up-selling Customer development through personalization and customization Customer requisition through referrals Four stages of Customer Life-Cycle
  8. 8. Differences between CRM and e-CRM
  9. 9. Need for E-CRM implementation • Information integration application – An incomplete view of customers reduces their loyalty and trust – Consolidating customer data and information from different sources – To keep up with every customer’s interaction • Customer analysis application – Measures, predicts, and interprets customer behaviors – Predictive models to identify the customers most likely to perform a particular activity – Online analytical processing, data mining and statistics • Real-time decision application – To coordinate and synchronize communications across disparate customer – An effective real-time decision application promotes information exchange between the company and every customer • Personalized messaging application – Building customer profiles and enables customized product and service offerings based on the information integration application.
  10. 10. Technology Adoption in case of e-CRM Figure: An overview of the components of e-CRM technologies
  11. 11. Steps to e-CRM Success  Knowledge Management What actions to take as a result of this knowledge.  Database Consolidation Re-engineering the business process around the customer. All interactions with customers recorded in one place.  Integration of Channels and Systems: Respond to customers through their channel of choice E-mail, phone, chat line, etc.  Technology and Infrastructure: Organization and scalability of technology must be able to handle increased volume of customers.  Change Management More than a change in technology is required Change in attitude and philosophy is key Product centric focus vs. customer centric focus
  12. 12. Benefits of e-CRM  Bank’s Perspective Increased sales revenues Increased convenience Improved customer service rating Decreased administrative costs Ability to introduce new schemes at a faster rate. Facility to the customer in his mobile business life Improved speed of dissemination of information Reduced subjectivity in operations.  Customer Perspective Easy Customer Interaction with the banks which will cause for satisfaction. The interaction process may include three major factors: information exchange, business or financial transaction, and social exchange. Speedy processing of transaction through e- response. E-CRM improves and maintains transactions security of the customers. Trust and Convenience is a major benefit provided to the customers of the banks. Increasing the rate of accuracy of the transactions via e-CRM that is improvement of service quality.
  13. 13. E-CRM in Banks MARKETING : Marketing was the most often function associated with CRM. Ling and Yen (2001) had described the evolution of CRM from direct sales to mass marketing, target marketing and then to customer relationship. Thus marketing emphasizing that marketing and CRM were inseparable. SALES : The sales function is direct interaction with customer which made up CRM (Kin caid 2003) it was important to develop sales strategies at customer level to achieve revenue goals .With technologies emerging for sales function it was possible to make the sales process more efficient and automated to increase sales SERVICE AND SUPPORT: High quality customer service and support was the key to improve retention rates and maintaining good customer relations. In today’s competitive environment, companies pay more attention to fulfill the needs of customers. Customer service personnel providing support to customers require operational integration with field service personnel and the sales force. E-CRM can help in integrating these groups with operational organization as a whole and the sales force. Hence e-CRM is significantly applicable for banks all over the world.
  14. 14. Techniques of e-CRM used by the Banks  Automated Teller Machines (ATMs)  Telex  Fax  Internet  Tele Banking / Phone Banking  Electronic Clearing Services  Online Banking  Infinet  Swift  Mobile Banking  Wireless Banking Services  Electronic Fund Transfer (EFT)  Total Branch Mechanization (TBM)  Data warehousing and data mining.
  15. 15. Current Status of e-CRM in Banks of Bangladesh
  16. 16. E-CRM in Banks: Future Prospects  To take advantage of this growing market, global giants like PeopleSoft, SAP, Baan, Nortel, Talisma Corporation, Oracle Corp., Pivotal, and Siebel Systems are planning to invest there so as to provide e-CRM softwares and services to the companies including banks.  On account of factors such as rise in the depositor base of banks and an increasing tendency among the new generation banks to diversify into web- enabled services, the number of net bank registrations has sky-rocketed. World- wide trend shows that net banking is perceived as a convenient and fast way of doing banking business and is fast gaining grounds.  Once these issues relating to infrastructure and security are resolved IT-related services will get a big boost in Bangladeshi Banks. Our government is aware of the problems relating to e-transaction. The Government need to pass a bill involves legal provisions relating to piracy, defamation, advertising, taxation, digital signatures, copyrights and trade secrets in the cyber-world and that bill will intend to facilitate e-business by removing legal uncertainties created by new technologies.
  17. 17. Failures in e-CRM Implementation e-CRM failure are the following: o Difficulty in measuring and valuing intangible benefits. o Failure to identify and focus on specific business problems. o Lack of active senior management sponsorship. o Poor user acceptance. o Trying to automate a poorly defined process. Failure rates in CRM from 2001-2009  2001- 50% failure rate according to the Gartner group  2002- 70% failure rate according to Butler group  2003- 69.3% according to Selling Power, CSO Forum  2004- 18% according to AMR Research group  2005- 31% according to AMR Research  2006- 29% according to AMR Research  2007- 56% according to Economist Intelligence Unit  2009- 47% according to Forrester Research.
  18. 18. Privacy Concern  The more data, the better the service companies can deliver to individual customers.  Some known examples of these problems are conducting credit-card transaction online of the phenomenon known as 'cookies' used on the Internet in order to track someone’s information and behavior.  The design and the quality of the website are two very important aspects that influence the level of trust customers experience and their willingness of reluctance to do a transaction or leave personal information.  Privacy policies can be ineffective in relaying to customers how much of their information is being used.  In a recent study by The University of Pennsylvania and University of California, it was revealed that over half the respondents have an incorrect understanding of how their information is being used. They believe that, if a company has a privacy policy, they will not share the customer's information with third party companies without the customer's express consent.  Statistics on privacy: -38% of retailers don't talk about privacy in their sign up or welcome email -About 50% of major online retailers discuss privacy concerns during the email subscription process
  19. 19. Challenges & Recommendations  Challenges • Creating an intelligent, unified view of customers and their needs. • Identify and cross-sell products, from multiple repositories & systems. • Assisting workforce in achieving higher targets, reducing non-core workloads, minimizing coordination efforts and provide actionable intelligence. • A single window to view end-to-end processes that spans across systems and enforce TAT/SLA adherence. • Converging multiple, disjoint, independent campaigns across products, while providing visibility across channels. • Ensuring reliably coordinating, collaborating and making action customer complaints across channels to ensure fast & accurate resolutions. • Reducing process cost and wastage while conforming to compliance and audit standards. • Real-time insights into processes with intelligent reports & dashboards for pro-active actions.  Recommendations • First implementing may cause various troubles, but considering positive impacts on the business, Banks should adopt e-CRM. • To keep symphony with the first world countries, Bangladeshi banks introduce e-CRM as soon as possible. • Besides some private banks, public banks in Bangladesh should also implemented e-CRM in their operational business. • Though implementing e-CRM in the operational business, banks can improve their services to their valued clients. • Regulating and monitoring process can be more improved through implementing e-CRM in banks. • Ignoring complexity and cost, banks can get more close to their customer through applied technological applications. • Banking business can expand its territory through e- CRM. “Banks can no longer rely on customer inertia in order to retain customer loyalty. Customers are drifting away from inherited relationships to managed relationships, from face-to-face to virtual banking and from branch specific to anywhere banking.”